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Our Rates Explained:


ALTI's rates are nearly ONE-HALF
of other, less experienced consultants
and full-service Marketing Agencies.

Before we can explain WHY our rates are so low, its important to understand the fundamentals of how outsourced freelance service providers and consultants need to work and to debunk a few myths along the way.  

This will help you to better understand their fees and the expectations that can go along with a consulting engagement.

How many hours can a senior independent consultant bill out?

Independent consultants will typically work up to 50 hours per week.

They will spend 10+ hours prospecting
5-10 hours performing administration work
10+ hours continuing their education
2+ hours speaking, interviewing & writing

That leaves under 20 hours of billable time per week!  Imagine if you had to work 50 hour weeks, but were only paid for the last 20 hours of work.  What would your annual salary be? 

Better yet, what would your hourly wage need to become to yield your existing annual salary?

Do you work 52 weeks in a year?  

Of course not, most salaried employees actually only work about 48 weeks in a year!  Most employees collect at least 2 weeks paid vacation, 1 week for sick time and another week in the observance of national holidays.  Therefore, the average employee only delivers 1,920 hours of production, assuming a 40-hour week, though they are paid for 2,080 hours.

It would only be fair that the consultant enjoy the same time off as any average employee.  Therefore, the consultant only has 960 total billable hours compared to the 2,000 annual hours of a salaried employee.  (20 hours per week x 48 weeks = 960 billable hours)

Salaried employees take their benefits for granted; their employer provides an office, computer, perhaps a lease car, expense account and a wide spectrum of insurance and retirement planning assistance. 

The independent consultant must bear all these costs himself, thus to net the same annual income of an average salaried employee, his fees must include his operating expenses.  Operating expenses for an independent consultant range between $10,000 to as much as $50,000 per year.

Monthly Expenses Conservatively Estimated:

Home Office: $200
Lease Car:  $260
Expenses: $210
Health Insurance:  $160
Life Insurance:  $32
Disability: $26
401(k) Contribution: $400

Total Monthly Expenses: $1,288

Total Annual Expenses: $15,456

According to salary surveys of Marketing Executives at www.Salary.com, the average Marketing Executive earns about $137,962.  Therefore, to properly calculate what an average consultant would need to bill out, please follow the formula below:

Average Annual Salary: $137,962
Plus Operating Overhead: $15,456

Total Income Needed: $153,418

Divided by total available billable hours of 960

Therefore, a conservative estimate of hourly retainer fees for an average senior independent marketing consultant / advisor  would need to be $159.81 or roughly $160 hr.

The good news is that ALTIís rates are nearly ONE-HALF of the less experienced independent marketing consultant and almost ONE-THIRD of a full-service Marketing Agency

Why are ALTI's rates so low?  Click here to find out why.

 eMarketing, Web Site Marketing and Promotions, eMail Marketing Management, Search Engine Optimization Services

© 2002, 2003, 2004, 2005, 2006 ALTI Success Strategies & Allan Sabo - all rights reserved

Web:
 http://www.ALTIconsulting.com
Phone:
 206-984-9560
Fax:
 775-261-2477
E-mail: